Red BarnThe Single Family Housing Guaranteed Loan Program is designed to guarantee the loan on a single-family dwelling that will become the borrower’s primary residence. Certain rural properties, however, do not meet the standards of eligibility for SFHGLP, such as farm service buildings and income-producing properties.

A farm service building is considered to be any building, regardless of value, used in the operations of farming, for producing and selling agricultural commodities. If such a structure is merely located on a property adjacent to the one being purchased, then said property is still eligible; it becomes ineligible if the structure appears on the lot itself.

A “related facility” on a rural property that is not a farm service building is eligible for loan services; sheds, garages, and underground shelters count as related facilities. However, any structures that exist for the purpose of generating income, including warehouses, boarding houses, and commercial and office buildings, will render a property ineligible. This prohibition also applies to income-producing land, regardless of whether any revenues are actually produced.

There are no acreage limitations imposed by the USDA Rural development State Offices on the land size associated with the eligible property.